Chemring profit slips as US government shutdown delays shipments

Thu Jan 23, 2014 2:43am EST

Jan 23 (Reuters) - British defence contractor Chemring reported a 25.2 percent fall in full-year profit as it was hurt by the U.S. government shutdown in October.

The munitions and countermeasures specialist said pretax profit on an underlying basis fell to 52.4 million pounds ($86.90 million) in the year ended Oct. 31 from 70.1 million pounds a year earlier.

The company, which manufactures ejector seats for fighter jets, said the shutdown during the last month of its financial year delayed product acceptance and shipments in October.

Revenue fell 15 percent to 624.9 million pounds.

Chemring added that it would pursue deals within non-NATO markets, where defence spending is expected to increase.

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